Introduction
Nike Inc.’s continued global success can be attributed to its ability to diversify its product offerings. The organization distributes numerous brands worldwide, and maintaining consumer loyalty has consistently generated substantial revenue. According to Eyada (2020), Nike Inc. shareholders keep earning profits from the share market despite the company’s stock price dropping to $111.00 in 2020. Nike Inc.’s stock price stands out compared to other multinational corporations. Nike generates most of its revenue from selling athletic apparel and footwear (Kim, 2020).
In 2018, nearly 42 percent of the company’s total revenue came from footwear sales. As global demand for its products increases, Nike has maintained its operations in over a hundred markets due to its dedicated workforce. Asia, the United States, Europe, and South America are the largest consumer markets. Nike Inc. produces over 27 percent of the world’s footwear (Tighe, 2022). Nike’s growth and prosperity have been fuelled by its innovative product development strategies, creative marketing campaigns, and strong brand recognition amongst its consumer base.
Summary
Nike Inc. is a global footwear manufacturer and one of the world’s most prestigious brands. The company has come a long way since its humble beginnings in 1964 when the brand was first introduced; its sales and profits have increased each year. Nike Inc. was able to diversify into additional product categories as the company grew and captured a larger market share (Tighe, 2022). According to sales data, Nike Inc. has manufactured sports equipment, a product category in which it has gained market share in recent years.
Kim (2020) demonstrates that the company strives to serve as a source of inspiration and innovation for athletes around the globe. Consequently, Nike Inc. continually pushes the boundaries of what is possible for people through product design and manufacturing innovations. Additionally, Nike strives to cultivate an internationally diverse and innovative workforce facilitated by eco-friendly products (Kim, 2020). Nike Inc. is dedicated to the research and development, invention, and promotion of athletic apparel, footwear, components, and services on a global scale. In addition to its web page, the company sells its products at over 20,000 locations.
Problems and Symptoms
Initial observations suggest that the root causes of the problems at Nike Inc. are low wages, long hours, and unsafe working conditions, all of which contribute to the rise of unfair labor practices. These are typical concerns for manufacturing facilities that outsource work to other nations. The challenges result in symptoms such as reputational harm, declining operations, exploitative labor, and diminishing consumer loyalty (Kim, 2020).
Moreover, shoe and other footwear production is labor-intensive, requiring Nike Inc. to partition the production process into distinct departments. As a result, the company engages in marketing, production, and distribution (Cronin & George, 2020). The organization’s designers and researchers contribute to developing new products and services in response to clients’ evolving wants and requirements. Outsourcing production to third parties is a significant problem within the organization. The organization is in charge of all production processes and quality control. Due to their low production costs, manufacturing is frequently outsourced to developing nations. The organization struggles to balance respecting the rights of contracted employees and generating a profit.
Team Behavior Themes
The Nike case sheds light on numerous organizational design and transformation-related topics. When the production process is divided into two significant phases, the corporation loses command over its manufacturing operations, and cooperation suffers. Nike Inc. hires scientists and artists who can create novel solutions to market problems; an outsourced company manufactures the products.
Therefore, the manufacturer is responsible for providing a safe and enjoyable workplace (Kim et al., 2020). The division of labor leads to a lack of coordination and deteriorating working conditions since all factories are focused on reducing production costs; Nike Inc.’s collaboration practices change frequently (Kim, 2020). The organization’s efforts have significantly improved production facility collaboration and working conditions.
Teamwork is essential, especially when meeting the company’s high product quality and consumer satisfaction standards through innovation. The relationship is severed when an outsourced company breaches the organization’s labor guidelines and processes. The company’s goal is to better its performance, and it endeavors to do so by manufacturing high-quality goods and sustaining employee engagement (Kim, 2020). Collaboration with external partners raises the company’s awareness of the numerous factors that affect its operations and the quality of life of its employees.
Consequences to the Organization
When problems are not solved, a business may have various unfavorable effects. For instance, it causes high turnover rates because of tensions between staff and upper management over logistics (Kim et al., 2020). Conflicts arise when employees rebel against initiatives implemented by companies to manage their functions better. Since most of them require independence on the job, they often react negatively to rules instituted by upper management; their work habits and motivation suffer because of these problems.
In addition, stakeholders and other people around the company start acting irrationally, which lowers productivity and slows down operations. The Nike Company has a similar problem to many other large corporations: the deployment of overly restrictive policies by upper management negatively impacts staff morale and productivity. When this happens, the management usually loses faith in the company and believes that things will continue as they are. Some could look for ways to transfer their expertise to rival businesses to boost their output.
If interventions are not implemented, numerous employees will complain about the company’s performance. Their actions indicate that management has not provided adequate training and resources for the staff to advance the company’s processes efficiently. Employee devotion is a key performance indicator since it provides insight into the strengths and shortcomings of the workforce, which is essential to the success of any business. Inadequate pay and benefits are just two examples of the new factors contributing to low productivity (Prasetio et al., 2019).
Companies with inefficient working conditions often require their staff to conform to the status quo. When this happens, productivity drops, and employees become less effective at accomplishing their goals. The Nike Corporation has publicly discussed these concerns and adjusted its business strategies to improve efficiency and generate more revenue (Kim et al., 2020). Poor performance reduces revenue and hinders the company’s ability to adapt to shifting market conditions if the underlying issues are not addressed. It allows rivals to challenge the company’s offerings in the marketplace successfully. The inability to efficiently organize one’s workforce may also have a negative impact on revenue.
When workers are less open to the market’s new developments, performance suffers, and management is discouraged from using ways to improve productivity and boost output when there is resistance to change. In addition, employees are not exposed to varying market conditions that could influence their behavior and boost their morale, leading to improved productivity. As a result, the company’s bottom line has taken a hit because of the shift in market dynamics. Relaxation from embracing the novel operational model and reacting to the changing workplace conditions has led to the corporation facing intense rivalry in other market prospects (Prasetio et al., 2019).
Attributable to the cutthroat atmosphere of the sports business, the organization must adapt to new market conditions and ensure its operations are constantly improving. Neglecting such issues and failing to find workable solutions can have a negative impact on productivity and employee morale. When adjustments are not made, employees are forced to act in ways that could compromise productivity. As a result, the company will continue to struggle with low sales and operating experience if the problem is not addressed promptly.
Potential Benefits
By fixing the company’s internal problems, it can reap numerous rewards. To begin with, the teams will find increased efficiency and harmony. Management and staff coordination affects how an organization performs its daily operations. In this scenario, it aids in maintaining work processes to boost workers’ output. When employees are well-organized and work together toward common goals, the workplace becomes a productive and pleasant place. Motivated employees can better adapt to market shifts, which boosts the company’s stability and bottom line (Prasetio et al., 2019). It guarantees that the proper decisions are made and put into action by management to improve the culture of the company.
Together, management and employees can solve the problems and improve the workplace for the company’s future success. When a business succeeds, employees are able to boost their working connections and have few turnovers as a result. Reducing animosity and confusion boosts confidence in the company, which in turn keeps employees upbeat and productive. The absence of conflicts at work also frees workers to focus their attention and energy on boosting productivity, improving trustworthiness, and enhancing efficiency.
Employee morale and productivity can be boosted through the company’s pay plans. Personnel with better pay tend to have enhanced behavioral stances, and companies with better management of their employees tend to retain those workers. Employees are better compensated in this instance if they are able to achieve work-life balance by cutting back on their working hours and the number of regulations governing their employment. When there is a work-life imbalance, employee morale suffers, which in turn leads to decreased market revenue.
Employee teams may modify their habits to meet the workplace conditions, but the setting might not adapt to their ways of excelling in their tasks (Kim et al., 2020). This undermines the company’s ability to implement and maintain improvements to its business processes. When a company fixes its pay and work-life balance problems, it becomes more efficient and encourages its employees to do better. It improves the company’s operations by making it easy to fix issues and boost productivity, leading to high reliability overall. Such approaches enhance the teams’ ability to raise dependability and push forward efforts in pursuit of the organizational goals.
Interventions provide the organization with a means to plan for future business activities that may be marred by uncertainty. The factors enable the company to research and comprehend the environment in the organization, which in turn aids the firm in developing enhanced approaches for the future through problem-solving and the successful improvement of employee behavior. Risk prediction enables businesses and employees to make long-term plans based on actual conditions.
Management can put the same measures in place to keep the company’s services going strong and push the business forward in a way that generates more money(Aljarah & Alrawashdeh, 2020). The corporation keeps running and keeps its staff happy by constantly monitoring the surroundings for signs of potential trouble. Workers who feel their occupations are secure are highly likely to stick with the company, use their talents to their full potential, and contribute to the organization’s success.
Intervention Plan
Organizational problems can be solved by a number of solutions based on Team Behavior Theory. The team’s motivation and output will rise if conditions in the office are enhanced. The theory of mind suggests that a positive work environment can keep people committed and enthusiastic (Riyanto et al., 2021). As employees become more comfortable in their new roles, they develop better attitudes about contributing to the company’s goals. By setting their minds to it, employees are more likely to develop productive routines that boost productivity and morale in the workplace.
Based on motivation theory, when human resource management provides due wages and benefits, it changes how employees approach their work and view certain parts of their employment. This will increase the firm’s dependability and prompt employees to make the best choices for the company’s future (Aljarah & Alrawashdeh, 2020). Nike Companies can encourage better teamwork and less miscommunication by adopting compensation schemes and enhancing the social well-being of the workforce. In addition, workers will get valuable work experience and be more committed and productive in their efforts to make a living.
Management theory also recognizes the importance of personnel in the delivery of goods and services. Employees are more likely to make reasonable decisions and lessen problems that contribute to a hostile work environment if they are inspired and their teams are well-organized (Riyanto et al., 2021). They will work hard and view their jobs more optimistically. When leadership effectively creates and maintains a culture distinguished by trust, allegiance, and dependability, staff members are highly likely to demonstrate increased levels of dedication and involvement in the organization.
Attributable to these interventions, employees will be better able to coordinate their efforts with the company’s overarching goals. Nike can grow its business and strengthen its position in the market if its employees act rationally and do their jobs well. An effective strategy guarantees that the company will continue to be competent and efficient in all its operations. This is crucial because it helps businesses adapt to changing market conditions and ensures that their employees act according to the company’s values. Sustainability is enhanced when employees act ethically, and both low performance and employee turnover are reduced when staff members have more experience.
Evaluation Plan
It will be prudent to employ diverse data collection and feedback methodologies when evaluating employee motivation and recognition. Time-tested methodologies such as comprehensive interviews, peer awards, 360-degree feedback, focus groups, self-evaluations, annual reviews, and customer surveys are indispensable. It is advisable to employ a variety of sources and methodologies to obtain a precise and unbiased assessment of staff motivation and appreciation, as well as to identify areas for improvement (Kim et al., 2020).
Consequently, the evaluation and reward system can be more equitable, legitimate, and dependable. An essential approach to assessing and incentivizing employee teams is to evaluate and enhance the system on a routine basis. It will be necessary to monitor and analyze the data that has been obtained, as well as gather input from personnel and other relevant stakeholders, to assess the measurement and reward program’s performance, efficiency, and effectiveness. To maintain the system’s efficacy in serving Nike and its employees, it will be imperative to implement the requisite modifications and improvements as indicated by the evaluation outcomes.
Conclusion
Nike Company has been hampered by external factors, which have discouraged workers and lowered productivity. Firm efforts to improve business procedures have not resulted in improved conditions for employees, who instead face poor pay, harsh treatment and rules, limited opportunities for personal growth, and an inefficient work environment. Attributable to such problems, employees are less likely to bring their personal and professional aspirations into harmony. These issues have a negative impact on the organization and hinder the ability of employees to communicate and work together effectively. Addressing these concerns and ensuring they advance corporate activities to adapt and help the workers have a happy working environment is essential if the company is to preserve its competence, successfully maximize reliability, and advance business processes.
Nike Company should ensure improved remuneration plans, an advanced working atmosphere, and better working conditions to boost team behavior. By making these adjustments, the company improves its chances of success and moves its operations forward more efficiently. Performance measurements and persuasive study of employees’ attitudes toward work are two ways in which such initiatives can be assessed.
Employees’ positive attitudes and ongoing efforts to better their work habits make interventions effective and reliable. Minimizing misunderstanding-inducing platforms will improve the company’s operations and maintain better working conditions. As a result, Nike Company will be more trustworthy, and the company’s effectiveness and structure will be preserved for the sake of problem-solving.
References
Aljarah, A., & Alrawashdeh, M. (2020). Boosting customer citizenship behavior through corporate social responsibility: Does perceived service quality matter?Social Responsibility Journal, 17(5), 631-647. Web.
Cronin, M. A., & George, E. (2020). The why and how of the integrative review. Organizational Research Methods, 26(1), 168-192. Web.
Eyada, B. (2020). Brand activism, the relation, and impact on consumer perception: A case study on Nike advertising. International Journal of Marketing Studies, 12(4), 30-42. Web.
Kim, J. K., Overton, H., Bhalla, N., & Li, J. Y. (2020). Nike, Colin Kaepernick, and the politicization of sports: Examining perceived organizational motives and public responses. Public Relations Review, 46(2). Web.
Kim, M. (2020). How Phil Knight made Nike a leader in the sport industry: Examining the success factors. Sport in Society, 23(9), 1512-1523. Web.
Prasetio, A. P., Azis, E., & Anggadwita, G. (2019). Exploring compensation satisfaction to enhance motivation and reduce turnover intention among employee of private bottled water company in Indonesia. Jurnal Bisnis danManajemen, 20(1), 32-48. Web.
Riyanto, S., Endri, E., & Herlisha, N. (2021). Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement. Problems and Perspectives in Management, 19(3), 162-174. Web.
Tighe, D. (2022). Forecast of Nike’s global market share in athletic footwear 2011-2025. Statista. Web.
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